Union Metal Mfg. Co. v. Commissioner
United States Board of Tax Appeals
A taxpayer holding patents and exercising the rights under them in the conduct of its business is entitled to a deduction for their exhaustion under the Revenue Act of 1918. Failure by the taxpayer to claim such deduction in its original return does not constitute the exercise of an election or option and does not preclude the claiming of such deduction later.
1Opinion of the Court
OPINION.
Ivins :
The taxpayer was the owner of certain patents used in its business of manufacturing articles of metal work. In its original income and profits tax return for 1918 it claimed no deduction for the exhaustion of these patents. It later proposed to claim such a deduction based on the value of the patents at March 1, 1913, but the Commissioner refused to permit the deduction to be then taken, and determined a deficiency. From this determination the taxpayer has appealed.
Counsel for the taxpayer and the Commissioner, and numerous amici curios, in their arguments and briefs in this…
2Cases cited2 opinions
- Doyle v. Mitchell Brothers Co.Supreme Court of the United States · 1918
- Von Baumbach v. Sargent Land Co.Supreme Court of the United States · 1917
3Cited by21 opinions
- Tide Water Oil Co. v. CommissionerUnited States Board of Tax Appeals · 1934
- St. Louis Screw Co. v. CommissionerUnited States Board of Tax Appeals · 1925
- Pikeville Coal Co. v. United StatesUnited States Court of Federal Claims · 1997
- Wheelock v. CommissionerUnited States Board of Tax Appeals · 1933
- Bockhoff v. CommissionerUnited States Board of Tax Appeals · 1926
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